EXAM 2 Review Previous Exams

EXAM 2 Review Previous Exams - Exam 2 Review Questions Dr....

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Exam 2 – Review Questions Dr. Ron Lazer Source: Old Exams 1. The following statements regarding perpetual inventory and periodic inventory methods of handling merchandise are all correct except: a. A perpetual inventory method makes it unnecessary to take a physical count of inventory on hand b. The perpetual inventory method offers better inventory control and more accurate determination of cost of goods sold than the period inventory method c. The periodic inventory method is based upon the assumption that goods that were acquired and are not on hand have been previously sold d. The periodic inventory system is less expensive to operate but may lead to inefficiencies e. None of the above Ron Lazer, Ph.D. 2. Given the following information compute the net purchases for Hensley Company. Purchases $52,000 Purchases returns and allowances 1,000 Purchases discounts 1,000 Transportation in 3,800 Sales 101,000 Ending Inventory 38,000 Beginning Inventory 41,000 a. $50,000 b. $53,200 c. $53,800 d. $94,200 e. None of the above Ron Lazer, Ph.D. 3. The following data is taken from the books and records of the Ram Company. Ram uses periodic method. Beginning Inventory
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This note was uploaded on 01/09/2010 for the course ACCT 2331 taught by Professor Staff during the Fall '08 term at University of Houston.

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EXAM 2 Review Previous Exams - Exam 2 Review Questions Dr....

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